Nvidia, the company with the largest market capitalization in the world, has announced the signing of a mega multi-year agreement with Meta for the sale of millions of its current and future artificial intelligence chip, including the central processing unit, The so-called Cpu, which compete with products from Intel and Advanced Micro Devices.
On Wall Street yesterday the Nvidia title rose 1,6%, reviving investor interest in the entire sector, which had waned in recent weeks over concerns about the high valuations of megacaps and how long it might take for investments in artificial intelligence to boost revenue growth. Meta rose by 0,6%, but, in addition to the megacaps, other names in the sector rose, still powerful, and found a new boost: colleagues Sandisk, Western Digital and Seagate Technology Holdings increased by between 1,7% and 4,4% each
Nvidia did not disclose the value of the deal, but stressed that it includes its existing chips Blackwell and future chips Ruby AI in addition to standalone installations of its central processors Grace e Vera. Nvidia introduced central processors, based on the technology of Arm Holdings as companions to its artificial intelligence chips, starting in 2023. But yesterday's announcement signaled that Nvidia aims to promote these chips in other emerging sectors as well.
Zuckerberg: With this agreement, we will offer personal superintelligence to everyone in the world.
Nvidia's announcement comes as also Meta is developing its own artificial intelligence chips and is in negotiation with Google for using its Tensor Processing Unit (TPU) chips for artificial intelligence tasks.
Meta said the partnership with Nvidia will help to accelerate its artificial intelligence strategy and large-scale computing capabilities. “We are thrilled to expand our partnership with Nvidia to build cutting-edge clusters using their Vera Rubin platform to deliver personal superintelligence to everyone in the world,” said Meta CEO Mark Zuckerberg.
According to analysts, the collaboration is also important because it goes beyond processors and includes technologies networking and security. In addition to the chips, Meta will expand the use of the networking platform Nvidia's Spectrum-X Ethernet to improve data center efficiency and throughput. The company has also adopted Nvidia's Confidential Computing technology for WhatsApp to enable advanced AI features while maintaining the user privacy.
Analysts suggest that despite increasing competition and domestic chip development, the integrated hardware and software strategy Nvidia's performance remains a key competitive advantage.
